People will tend to internalize externalities when
A) responsibility for the consequences of actions is more clearly assigned to the actors.
B) spillover costs and benefits become more common and widespread.
C) they calculate more carefully the marginal costs and marginal benefits of their decisions.
D) they feel less empathy for others.
Question 2
Refer to the table above. For which of the following choices is the marginal total cost the lowest?
A) Choosing factory Close over factory Far
B) Choosing factory Far over factory Very Far
C) Choosing factory Very Close over factory Close
D) Choosing factory Close over factory Very Far
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